Does Welfare Inhibit Success? The Long-Term Effects of Removing Low-Income Youth from the Disability Rolls

ManasI Deshpande

American Economic Review, 2016, vol. 106, issue 11, 3300-3330

Abstract: I estimate the effects of removing low-income youth with disabilities from Supplemental Security Income (SSI) on their earnings and income in adulthood. Using a regression discontinuity design based on a 1996 policy change in age 18 medical reviews, I find that youth who are removed from SSI at age 18 recover one-third of the lost SSI cash income in earnings. SSI youth who are removed and stay off SSI earn on average $4,400 annually, and they lose $76,000 in present discounted observed income over the 16 years following removal relative to those who do not receive a review.

JEL-codes: H55 I38 J13 J14 (search for similar items in EconPapers)
Date: 2016
Note: DOI: 10.1257/aer.20151129
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